Options Strategy Calculator & Payoff Diagrams

Long Call

BullishUnlimited ProfitLimited Loss

Buy a call option. Profit when the stock rises above breakeven. Max loss is the premium paid. Max profit is theoretically unlimited.

Strike Price ($)

Premium Paid ($)

Contracts

Key Facts:

Breakeven: Strike + Premium
Max Profit: Unlimited (as stock rises)
Max Loss: Premium paid
Best used when you expect a significant upward move before expiration.

Long Put

BearishLimited Loss

Buy a put option. Profit when the stock falls below breakeven. Max loss is the premium paid. Max profit limited to stock going to zero.

Strike Price ($)

Premium Paid ($)

Contracts

Key Facts:

Breakeven: Strike − Premium
Max Profit: Strike − Premium (if stock → $0)
Max Loss: Premium paid
Best used when you expect a sharp move downward.

Short (Naked) Call

Bearish/NeutralUnlimited RiskLimited Profit

Sell a call option without owning the stock. Collect premium but face unlimited upside risk if stock surges.

Strike Price ($)

Premium Received ($)

Contracts

Key Facts:

Breakeven: Strike + Premium
Max Profit: Premium received
Max Loss: Unlimited
⚠️ Very high risk. Requires margin. Not suitable for most retail traders.

Short (Naked) Put

Bullish/NeutralLimited Profit

Sell a put option. Collect premium. Obligated to buy stock at strike if exercised. Profit if stock stays above breakeven.

Strike Price ($)

Premium Received ($)

Contracts

Key Facts:

Breakeven: Strike − Premium
Max Profit: Premium received
Max Loss: Strike − Premium (if stock → $0)

Covered Call

Mildly BullishCapped ProfitPartial Hedge

Own 100 shares + sell an OTM call. Earns premium income. Profit capped at strike. Downside limited by stock ownership cost minus premium.

Stock Purchase Price ($)

Call Strike ($)

Call Premium Received ($)

Contracts (×100 shares)

Key Facts:

Breakeven: Stock Cost − Premium
Max Profit: (Strike − Stock Cost + Premium) × 100 × Contracts
Max Loss: (Stock Cost − Premium) × 100 × Contracts (if stock → $0)

Protective Put

Bullish with HedgeDownside Protected

Own 100 shares + buy a put for insurance. Limits downside loss. Unlimited upside minus premium cost.

Stock Purchase Price ($)

Put Strike ($)

Put Premium Paid ($)

Contracts

Key Facts:

Breakeven: Stock Cost + Premium
Max Loss: (Stock Cost − Strike + Premium) × 100 × Contracts
Max Profit: Unlimited upside

Collar

Neutral / Low Cost Hedge

Own stock + buy protective put + sell covered call. Net premium often near zero. Profit capped, downside protected.

Stock Purchase Price ($)

Put Strike ($)

Put Premium Paid ($)

Call Strike ($)

Call Premium Received ($)

Contracts

Key Facts:

Net Cost: Stock Cost + Put Premium − Call Premium
Max Profit: Call Strike − Net Cost per share
Max Loss: Net Cost − Put Strike per share

Cash-Secured Put

Bullish / Willing to BuyLimited Profit

Sell a put while holding enough cash to buy the shares if assigned. Collect premium. Effective entry strategy if you want the stock at a lower price.

Put Strike ($)

Premium Received ($)

Contracts

Key Facts:

Breakeven: Strike − Premium
Max Profit: Premium × 100 × Contracts
Max Loss: (Strike − Premium) × 100 × Contracts (stock → $0)

Bull Call Spread

BullishLimited Profit & Loss

Buy a lower strike call, sell a higher strike call. Lower cost than buying a call outright. Profit capped at the spread width minus net debit.

Long Call Strike ($)

Long Call Premium ($)

Short Call Strike ($)

Short Call Premium ($)

Contracts

Key Facts:

Net Debit: Long Premium − Short Premium
Breakeven: Long Strike + Net Debit
Max Profit: Spread Width − Net Debit
Max Loss: Net Debit

Bear Put Spread

BearishLimited Profit & Loss

Buy a higher strike put, sell a lower strike put. Net debit paid. Profit if stock falls below breakeven.

Long Put Strike ($)

Long Put Premium ($)

Short Put Strike ($)

Short Put Premium ($)

Contracts

Key Facts:

Net Debit: Long Premium − Short Premium
Breakeven: Long Strike − Net Debit
Max Profit: Spread Width − Net Debit
Max Loss: Net Debit

Bull Put Spread (Put Credit Spread)

Bullish/NeutralLimited Profit & Loss

Sell a higher strike put, buy a lower strike put. Net credit received. Profit if stock stays above upper strike.

Short Put Strike ($)

Short Put Premium ($)

Long Put Strike ($)

Long Put Premium ($)

Contracts

Key Facts:

Net Credit: Short Premium − Long Premium
Breakeven: Short Strike − Net Credit
Max Profit: Net Credit
Max Loss: Spread Width − Net Credit

Bear Call Spread (Call Credit Spread)

Bearish/NeutralLimited Profit & Loss

Sell a lower strike call, buy a higher strike call. Net credit received. Profit if stock stays below lower strike.

Short Call Strike ($)

Short Call Premium ($)

Long Call Strike ($)

Long Call Premium ($)

Contracts

Key Facts:

Net Credit: Short Premium − Long Premium
Breakeven: Short Strike + Net Credit
Max Profit: Net Credit
Max Loss: Spread Width − Net Credit

Long Straddle

Neutral — Wants Big MoveUnlimited Profit

Buy a call and a put at the same strike. Profit from large moves in either direction. Break even requires stock to move enough to cover total premium.

Strike Price ($)

Call Premium ($)

Put Premium ($)

Contracts

Key Facts:

Total Cost: Call Premium + Put Premium
Upper Breakeven: Strike + Total Cost
Lower Breakeven: Strike − Total Cost
Max Loss: Total Premium Paid (at strike)

Short Straddle

Neutral — Low VolatilityUnlimited Risk

Sell both a call and a put at the same strike. Profit from low volatility when stock stays near strike. Large moves cause unlimited loss.

Strike Price ($)

Call Premium ($)

Put Premium ($)

Contracts

Key Facts:

Max Profit: Total Premium Collected (at strike)
Upper Breakeven: Strike + Total Premium
Lower Breakeven: Strike − Total Premium
⚠️ Unlimited risk on upside, large risk on downside.

Long Strangle

Neutral — Expects Big MoveUnlimited Profit

Buy an OTM call and an OTM put at different strikes. Cheaper than straddle. Requires even bigger move to profit.

Put Strike ($)

Put Premium ($)

Call Strike ($)

Call Premium ($)

Contracts

Key Facts:

Total Cost: Call Premium + Put Premium
Upper Breakeven: Call Strike + Total Cost
Lower Breakeven: Put Strike − Total Cost
Max Loss: Total Premium (stock between the strikes)

Short Strangle

Neutral — Low VolatilityUnlimited Risk

Sell an OTM call and OTM put. Wider profit zone than short straddle, but lower premium. Profit when stock stays between the strikes.

Short Put Strike ($)

Put Premium ($)

Short Call Strike ($)

Call Premium ($)

Contracts

Key Facts:

Max Profit: Total Premium (between the strikes)
Upper Breakeven: Call Strike + Total Premium
Lower Breakeven: Put Strike − Total Premium

Iron Condor

NeutralLimited Profit & Loss

Sell an OTM put spread + sell an OTM call spread. Four legs total. Profit when stock stays within a range. Popular for range-bound, high-IV stocks.

Long Put Strike ($)

Long Put Premium ($)

Short Put Strike ($)

Short Put Premium ($)

Short Call Strike ($)

Short Call Premium ($)

Long Call Strike ($)

Long Call Premium ($)

Contracts

Key Facts:

Net Credit: (Short Put − Long Put) + (Short Call − Long Call)
Max Profit: Net Credit (stock in profit zone)
Max Loss: Spread Width − Net Credit

Iron Butterfly

NeutralLimited Profit & Loss

Sell an ATM call and ATM put (same strike), buy an OTM call and OTM put. Narrow profit zone. Higher premium than Iron Condor.

Long Put Strike ($)

Long Put Premium ($)

ATM Strike ($)

Short Put Premium ($)

Short Call Premium ($)

Long Call Strike ($)

Long Call Premium ($)

Contracts

Key Facts:

Net Credit: Short Put + Short Call − Long Put − Long Call
Max Profit: Net Credit (at ATM strike)
Max Loss: Wing Width − Net Credit

Long Call Butterfly Spread

NeutralLimited Profit & Loss

Buy one ITM call, sell two ATM calls, buy one OTM call. Net debit. Max profit when stock pins at middle strike at expiration.

Lower Strike ($)

Lower Call Premium ($)

Middle Strike ($)

Middle Call Premium ($)

Upper Strike ($)

Upper Call Premium ($)

Contracts

Key Facts:

Net Debit: Lower + Upper − 2×Middle Premium
Max Profit: Middle − Lower − Net Debit
Max Loss: Net Debit
Strikes must be equidistant for a standard butterfly.